Cikarang Industrial Zone to Get Transport Boost

By : webadmin | on 3:29 PM January 16, 2013
Category : Archive

Tito Summa Siahaan

The national government has vowed to build a transportation network inside an industrial zone in Cikarang, West Java.

Bastari Pandji, a director for public-private partnerships at the National Development Planning Agency (Bappenas), said the government is considering the feasibility of constructing a transportation network inside Cikarang Industrial Estate.

This comes after multiple complaints from industrial-estate operators about poor infrastructure such as roads and power in the area.

“The size of the investment will be around Rp 7 trillion [$730 million],” Bastari said on the sidelines of an infrastructure discussion held by the Indonesian Chamber of Commerce and Industry (Kadin) in Jakarta on Tuesday.

Bastari said that the construction would take place as a public-private partnership.

“The construction is expected to commence next year and will be completed within four years,” he said.

He added that the government has yet to determine its share of the project.

The Bappenas official added that Cikarang urgently needs a public transportation system due to its high population density. “They need to make 100 buses available for workers,” Bastari said. “The [proposed] train will be light and operated automatically.”

Cikarang Industrial Estate is one of several located in the area. Other operators include Lippo Cikarang, a light industry park.

The Cikarang Industrial Estate is home to many of the country’s manufacturers, including in the automotive and shoe sectors.

Poor infrastructure in Indonesia has been a frequent source of complaints for foreign and local manufacturers. Costly and unreliable transportation of goods has added to production costs, borne by manufacturers and consumers, and in some cases discouraged investment.